Exam PgMP topic 1 question 316 discussion

Actual exam question from PMI's PgMP

Question #: 316
Topic #: 1

After taking over a program, a program manager reviews the program's status and discovers that stakeholders do not know how the program is performing in relation to schedule and costs. The program manager establishes earned value (EV) metrics and determines that the program has a budget of US$2.1 million, is three months into a nine-month timeline, and the planned value (PV) at the three-month point should be US$320,000. The program has spent US$350,000 and the EV is US$340,000.
Based on this information, the program manager determines which of the following?

A. The schedule is US$30,000 under budget
B. The cost is US$20,000 under budget
C. The schedule is US$10,000 over budget
D. The cost is US$20,000 over budget

Show Suggested Answer

Suggested Answer: A 🗳️

by tsangckl at April 6, 2021, 2:52 p.m.

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NordSee

3 weeks ago

Selected Answer: A

This is some kind of tricky question but I've learned same calculation formula with "NawrasHamwi". The correct answer shall be Option-A.

upvoted 1 times

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Musfiq

9 months, 1 week ago

Selected Answer: C

With the rationale that actual cost is $10K more than the EV though this is not standard definition.

upvoted 1 times

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hanyulin

1 year, 1 month ago

Selected Answer: C

No correct answer! But chose C.

upvoted 2 times

Musfiq

9 months, 1 week ago

Agree. Based on the information SV or CPI could be calculated which are $20000 and 0.97 respectively.

upvoted 1 times

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NawrasHamwi

2 years, 1 month ago

Correct answer is A: PV = 320K, AC = 350K , EV = 340K SV = EV-PV = 20K, CV = EV-AC = -10K SV =20 and CV =-10, So the overall variance is SV - CV =10 ahead of schedule. Presently you are in the third month so in 3 months the situation is 10k ahead of schedule. The completion period is 9 months. If in 3 months you are 10k ahead of schedule so in 9 months will be 30k ahead of schedule.

upvoted 3 times

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NawrasHamwi

2 years, 1 month ago

Selected Answer: A

Correct answer is C: PV = 320K, AC = 350K , EV = 340K SV = EV-PV = 20K, CV = EV-AC = -10K SV =20 and CV =-10, So the overall variance is SV - CV =10 ahead of schedule. Presently you are in the third month so in 3 months the situation is 10k ahead of schedule. The completion period is 9 months. If in 3 months you are 10k ahead of schedule so in 9 months will be 30k ahead of schedule.

upvoted 2 times

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